https://www.avient.com/sites/default/files/2024-02/AVNT Q4 2023 Earnings Presentation_For Website_with Non-GAAP.pdf
When showing constant dollar figures on GAAP and non-GAAP financial measures, the foreign exchange impact is calculated by using current foreign exchange rates and applying them to the prior period results.
Avient does not provide reconciliations of forward-looking non-GAAP financial measures, such as outlook for Adjusted EBITDA, Adjusted Earnings Per Share and Adjusted Tax Rate, to the most comparable GAAP financial measures on a forward-
looking basis because Avient is unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort.
ASHISH KHANDPUR
PRESIDENT & CEO
4
5
PORTFOLIO TRANSFORMATION
5
46%
66%
87%
100%
0%
20%
40%
60%
80%
100%
2005 2010 2015 2020 2023
%
o
f A
dj
us
te
d
EB
IT
D
A
Commodity JVs Distribution Performance Products & Solutions Specialty Businesses
Adjusted EBITDA from Specialty Applications
SUSTAINABILITY AS A GROWTH DRIVER
7
LONG-TERM REVENUE GROWTH DRIVERS
Sustainable
Solutions
Composites, Healthcare,
Asia / LATAM
Overlap
Other
60%+
Key Growth
Drivers
Total Company Revenue
Growth Drivers Long-Term
Growth Rate
Sustainable Solutions 8–12%
Composites 8–10%
Healthcare 8–10%
Asia / LATAM 5%
Other 0–2%
Avient 6%
END MARKET OBSERVATIONS
(% OF COMPANY SALES)
ENERGY
DEFENSE
TELECOMMUNICATIONS
HEALTHCARE
8
TRANSPORTATION
INDUSTRIAL
BUILDING &
CONSTRUCTION 9%
CONSUMER
19%
PACKAGING
23%
9
REGIONAL OBSERVATIONS
(% OF COMPANY SALES)
9
41%
36%
Q 4 2 0 2 3 R E S U LT S
Q4 2023 PERFORMANCE VS.
https://www.avient.com/sites/default/files/2023-03/AVNT Q2 2022 Earnings Presentation - Website Version.pdf
S EC O N D Q UART ER 2022
RE S U LTS
$122
$134
$0.87
$0.98
Q2 2022 PERFORMANCE
(TOTAL COMPANY)
4
Sales Adjusted Operating Income
$1,235
$1,302
+ 5%
Adjusted EPS
+ 10% + 13%
(in millions) (in millions)
(+ 10% excluding FX) (+ 16% excluding FX) (+ 20% excluding FX)
Q2 2022 SEGMENT PERFORMANCE
5
CAI
$624
$649
($ in millions)
SEM Distribution
$86
$94
+ 4% + 9%
$404
$443
$24
$27
+ 10% + 13%
(1)
$241 $244
$37 $37
+ 1% Flat
(+ 10% excluding FX) (+ 16% excluding FX) (+ 6% excluding FX) (+ 3% excluding FX)
Q2 2021 $1,235 $122
Sustainable Solutions 17 7% 7
Healthcare 23 14% 5
Composites (ex Outdoor High Performance) 10 20% 4
Growth in Asia / LATAM 5 3% 1
Other 69 11% 5
Sub-total $1,359 10% $144
Outdoor High Performance Impact (9) (5)
Wage Inflation and Overtime (7)
Other Supply Chain Costs (2)
Clariant Color Integration Synergies 7
Incentives, Other Employee Costs 4
FX (48) (7)
Q2 2022 $1,302 5% $134
Q2 2022 SALES AND OPERATING INCOME
(TOTAL COMPANY)
6
Sales Growth Rate
Operating
Income$ millions
EBITDA
Q2 EBITDA BRIDGE
7
Price increases more than
offsets raw material and
supply chain impacts
Q2 2021 $ 159
Demand (29)
$ millions
CAI:
Price / Mix 87
Inflation (58)
SEM:
Price / Mix 36
Inflation (24)
Distribution:
Price / Mix 45
Inflation (41)
Net Price Benefit 45
Wage Inflation and Overtime (7)
Other Supply Chain Costs (2)
Clariant Color Integration Synergies 7
Incentives, Other Employee Costs 4
FX (7)
Q2 2022 $ 170
China Lockdowns / Russia Impact $ (14)
Outdoor High Performance (5)
Transportation (5)
8
Q2 '21 Adjusted EPS 0.87$
Color, Additives and Inks 0.11
Specialty Engineered Materials 0.01
Distribution 0.03
Corporate Costs 0.01
F/X (0.05)
Segment OI 0.11$
Interest Expense 0.03
Tax Rate (0.03)
Q2 '22 Adjusted EPS 0.98$
Q2 EPS BRIDGE
Key Updates
• Provided progress on 2030 Sustainability Goals
• Emphasized commitment to U.N.
Global Compact &
fulfilled Communication of Progress (COP)
requirements
• New Sustainability Strategy overview page including
our 2022 AIP ESG metrics
• New ESG Performance page with ESG ratings,
awards, and certifications
• Increased disclosures on carbon emissions, including
disclosure of Climate Change Scenario Analysis
• Added new Product Stewardship and Chemical
Management policies
• Enhanced data reporting for Workforce
Demographics
• Improved social disclosures on human rights,
dependent care and special leave and strategic
training management
2021 SUSTAINABILITY REPORT
Launching integrated sustainability website in parallel with report
Aligned with leading reporting frameworks
9
ESG PERFORMANCE & AWARDS
10
84th
ENVIRONMENTAL
SOCIAL
GOVERNANCE
1
3
(as of 6/30/22)
2022 O U TLO O K
$429
$490
$3.05
$3.50
FY 2022 GUIDANCE
(TOTAL COMPANY: CURRENT PORTFOLIO)
12
Sales Adjusted Operating Income
$4,819
$5,100
+ 6%
Adjusted EPS
+ 14% + 15%
(in millions) (in millions)
(+ 9% excluding FX) (+ 18% excluding FX) (+ 20% excluding FX)
13
CASH FLOW / LEVERAGE
($ millions) 2022E
Cash Flow from Operating Activities 400$
Less:
Run-Rate CapEx (90)
CapEx for Clariant Integration (10)
CapEx for IT System Upgrade (15)
Total CapEx (115)
Free Cash Flow 285$
Adjusted EBITDA 635$
Net Debt / Adjusted EBITDA 1.6x
14
DYNEEMA / DISTRIBUTION UPDATES
• Strong performance so far in 2022 in-line
with our modeling
• Acquisition to be finalized as early as
September 1, pending standard
regulatory process and closing conditions
• Encouraging interest thus far from
potential buyers for world-class business
with a strong track record
• Second round bids due in August
DISTRIBUTION
15
PRO FORMA MODELING UPDATE
2022E
($M)
Revenue 5,100$ 415$ 5,515$ (1,635)$ 3,880$
Adjusted EBITDA 635 130 765 (109) 656
EBITDA % 12% 31% 14% 7% 17%
Adj.
D I S T R IBU T I O N)
18
END-MARKET FOCUS FOR
NEW INNOVATION
Semiconductors Robotics Healthcare
Interconnected disruptive markets with massive innovation needs
19
APPENDIX
Performance
Additives
Pigments
TiO2
Dyestuffs
3%Polyethylene
Nylon
6%
Polypropylene
Other Raw
Materials
30%
Styrenic Block
Copolymer
~40% hydrocarbon based
(Grey shaded materials are hydrocarbon based,
includes portion of “Other Raw Materials”)
Non-hydrocarbon
based materials
22
• Significant raw material price inflation and
tight inventory continued in Q2 2022,
although at a slightly lesser rate compared
to the prior quarter
o For Q2 2022, the average cost of key
hydrocarbon based materials was up 15%,
roughly the same as the average cost of non-
hydrocarbon based materials
https://www.avient.com/sites/default/files/2024-08/Avient AUG 2024 Investor Presentation- w Non-GAAP.pdf
Factors that could cause actual results to differ materially from those implied by these forward-looking statements include, but are not limited to:
• Disruptions, uncertainty or volatility in the credit markets that could adversely impact the availability of credit already arranged and the availability and cost of credit in the future;
• The effect on foreign operations of currency fluctuations, tariffs and other political, economic and regulatory risks;
• Disruptions or inefficiencies in our supply chain, logistics, or operations;
• Changes in laws and regulations in jurisdictions where we conduct business, including with respect to plastics and climate change;
• Fluctuations in raw material prices, quality and supply, and in energy prices and supply;
• Demand for our products and services;
• Production outages or material costs associated with scheduled or unscheduled maintenance programs;
• Unanticipated developments that could occur with respect to contingencies such as litigation and environmental matters;
• Our ability to pay regular quarterly cash dividends and the amounts and timing of any future dividends;
• Information systems failures and cyberattacks;
• Amounts for cash and non-cash charges related to restructuring plans that may differ from original estimates, including because of timing changes associated with the underlying actions;
• Our ability to achieve strategic objectives and successfully integrate acquisitions, including the implementation of a cloud-based enterprise resource planning system, S/4HANA;
• Other factors affecting our business beyond our control, including without limitation, changes in the general economy, changes in interest rates, changes in the rate of inflation, geopolitical conflicts and any recessionary conditions; and
• Other factors described in our Annual Report on Form 10-K for the year ended December 31, 2023 under Item 1A, “Risk Factors.”
When showing constant dollar figures on GAAP and non-GAAP financial measures, the foreign exchange impact is calculated by using current foreign exchange rates and applying them to the prior period results.
For the same reasons, Avient is unable to address the probable significance of the unavailable information.
3
AVIENT OVERVIEW
2023 Financial ResultsCompany Overview Revenue By:
9,300
Employees
102
Manufacturing
Sites
20,000+
Customers
Innovating materials and
processing solutions to solve our
customers’ challenges while
enabling a sustainable world
Broad portfolio of technologies
with market leading positions
and flexibility to anticipate and
meet customer needs
Focus is on organic revenue
growth and margin expansion,
following our successful portfolio
transformation
$3.14B
Revenue
$2.36
Adjusted EPS
$502M
Adjusted EBITDA
16.0%
Adjusted EBITDA Margins
$186M
Adjusted Free Cash Flow
U.S. &
Canada
64%
Specialty
Engineered
Materials
Color
Additives
and Inks
41%
23%
19%
10% 5% 4%
Building &
Energy Telecom
Geography
Segment
Industry
2024 Financial Guidance
$515 to $540 million
Adjusted EBITDA
$2.55 to $2.70
Adjusted EPS
4
Industry Sustainability Standards
ESG Ratings Performance
1
4
87th
94th
percentile
Avient CDP Score:
A-
SUSTAINABILITY PERFORMANCE
AND RECOGNITION
AU G U S T 6 , 20 24
W EB CAS T
P RE SE N TATI O N
6
Q2 2024 HIGHLIGHTS
• 5% organic sales growth supported by
broad-based growth across all regions
in both CAI and SEM segments
• Growth stemmed from gaining share,
winning new product specifications
and restocking in certain end markets
• Cost control and operational
discipline expanded EBITDA margins
by 100 bps
• EPS exceeded guidance by $0.05
and increased 21% vs the prior year
Adj.
https://www.avient.com/sites/default/files/2020-12/firecon-cpe-product-bulletin.pdf
Cable constructions using FireCon CPE formulations
are suitable for the following UL Standards:
UL 13 - Power-Limited Circuit Cables
UL 44 - Thermoset-Insulated Wire and Cable
UL 62 - Flexible Cords and Cables
UL 1277 - Electrical Power and Control Tray
Cables with Optional Optical-Fiber
Members
UL 2250 - Instrumentation Tray Cable
KEY CHARACTERISTICS
• Retains flexibility at temperatures below 0°C
• Resistant to acids, alkalis, oils, fuels and
chemical solvents
• Excellent balance of physical properties
• Suitable for VW1 and tray cable rated
applications
• Available in UV resistant grades
• Available in custom colors
MARKETS AND APPLICATIONS
• Oil, gas and petroleum applications
• Tray cable
• Industrial cable
• Low-voltage power cables
• Medium-voltage power cables
• Control cables
• VW1 applications
PRODUCT BULLETIN
To learn more about FireCon CPE jacketing solutions,
contact Avient at 1.844.4AVIENT
www.avient.com
FIRECON™ CPE 30-33 RoHS
CPE 37-36 RoHS
CPE 37-31 RoHS
CPE 37-31 RoHS
Natural
Specific Gravity 1.31 1.38 1.39 1.39
MFI (190°C, 21.6 Kg) 15 22.4 34.3 34
Durometer Hardness 39D 31D 34D 34D
Tensile Strength, PSI 1,499 2,200 2,096 1,800
Tensile Elongation (%) 350 300 325 300
UL Temperature Rating °C 90 90 90 90
LOI (% Oxygen) 30 37 37 37
Brittleness Temperature °C -33 -36 -31 -31
TECHNICAL PROPERTIES
Copyright © 2020, Avient Corporation.
https://www.avient.com/sites/default/files/2021-04/versaflex-tpe-contact-lens-case-case-study.pdf
This not
only caused a high scrap rate, but also led to frequent
interruptions in the automated process so that the mold
and machine could be cleaned.
In addition to a lower material cost
than silicone, the Avient solution offered cycle time
efficiencies, lower part weight due to its lower specific
gravity, and reduced scrap rates.
https://www.avient.com/sites/default/files/2021-04/versalloy-medical-tubing-case-study.pdf
In addition to its excellent colorability and high flow,
the Versalloy solution possessed a lower specific gravity
and resulted in lower scrap rates compared to the
competitive TPV, providing the opportunity to reduce
system costs.
These savings resulted from lower specific
gravity of the Avient material (0.88 compared to 0.95)
and a 50% reduction in scrap rate.
https://www.avient.com/sites/default/files/2020-10/fluoropolymer-cable-case-study-.pdf
The manufacturer’s cable lines, in turn, saw a higher
scrap rate, which led to delayed deliveries to customers
and eventually to the need for price hikes.
On its manufacturing lines, the transition to Colorant
Chromatics fluoropolymer color concentrates helped
slash its scrap rate from 10% to less than 5%.
https://www.avient.com/sites/default/files/2024-11/Ballistic Panel Infographic.pdf
UL Rating Ammunition Velocity No.
Characteristic
GlasArmor
Thermoset
Panels
ThermoBallistic
Thermoplastic
Panels
Steel Concrete
Performance-to-Weight
Bullet Resistance – Pistols
Bullet Resistance – Rifles NA1
Temperature Performance 2
UV Resistance 3
Electrical Conductivity
Flame Retardance 5 4
Ease of Installation
1 Ballistic resistance to rifle fire can be achieved by layering
ThermoBallistic and GlasArmor panels – contact Avient
2 ThermoBallistic panels made with polypropylene resin systems
3 UV resistance is achieved using surface polymeric films
4 Flame retardant additives can be incorporated upon request under
some circumstances
5 Fire rated for 1-hour per ASTM E-119-09c when tested in an interior
wall system
Compare
the
different
materials
used for
ballistic
protection
https://go.avient.com/BallisticProtection?
https://www.avient.com/sites/default/files/2022-11/Avient Announces Third Quarter 2022 Results.pdf
Factors that could cause
actual results to differ materially from those implied by these forward-looking statements include,
but are not limited to: disruptions, uncertainty or volatility in the credit markets that could adversely
impact the availability of credit already arranged and the availability and cost of credit in the future;
the effect on foreign operations of currency fluctuations, tariffs and other political, economic and
regulatory risks; the current and potential future impact of the COVID-19 pandemic on our
business, results of operations, financial position or cash flows including, without limitation, any
supply chain and logistics issues; changes in laws and regulations regarding plastics in
jurisdictions where we conduct business; fluctuations in raw material prices, quality and supply,
and in energy prices and supply; production outages or material costs associated with scheduled
or unscheduled maintenance programs; unanticipated developments that could occur with
respect to contingencies such as litigation and environmental matters; our ability to achieve the
strategic and other objectives relating to the Avient Protective Materials business; an inability to
raise or sustain prices for products or services; our ability to pay regular quarterly cash dividends
and the amounts and timing of any future dividends; information systems failures and
cyberattacks; amounts for cash and non-cash charges related to restructuring plans that may
differ from original estimates, including because of timing changes associated with the underlying
actions; and other factors affecting our business beyond our control, including without limitation,
changes in the general economy, changes in interest rates, changes in the rate of inflation and
any recessionary conditions.
Three Months Ended
September 30,
Nine Months Ended
September 30,
Reconciliation to Consolidated Statements of Income 2022 2021 2022 2021
Sales $ 823.3 $ 818.0 $ 2,606.5 $ 2,508.5
Gross margin - GAAP 195.4 215.6 710.7 727.3
Special items in gross margin (Attachment 3) 31.8 17.3 35.6 27.7
Adjusted gross margin $ 227.2 $ 232.9 $ 746.3 $ 755.0
Adjusted gross margin as a percent of sales 27.7 % 28.5 % 28.6 % 30.1 %
Operating income - GAAP 40.6 52.8 242.9 229.6
Special items in operating income (Attachment 3) 40.2 20.0 48.8 36.6
Adjusted operating income $ 80.8 $ 72.8 $ 291.7 $ 266.2
Adjusted operating income as a percent of sales 9.8 % 8.9 % 11.2 % 10.6 %
The table below reconciles pre-special income tax expense and the pre-special effective tax rate to their most comparable US
GAAP figures.
Three Months Ended September 30,
2022 2021
GAAP
Results
Special
Items
Adjusted
Results
GAAP
Results
Special
Items
Adjusted
Results
(Loss) income from continuing operations before income
taxes $ (29.0) $ 82.0 $ 53.0 $ 35.4 $ 19.9 $ 55.3
Income tax expense - GAAP 1.2 — 1.2 (2.0) — (2.0)
Income tax impact of special items (Attachment 3) — (20.5) (20.5) — (4.6) (4.6)
Tax adjustments (Attachment 3) — 6.8 6.8 — (3.6) (3.6)
Income tax (expense) benefit $ 1.2 $ (13.7) $ (12.5) $ (2.0) $ (8.2) $ (10.2)
Effective Tax Rate(1) 4.1 % 23.7 % 5.7 % 18.4 %
(1) Rates may not recalculate from figures presented herein due to rounding
14
Nine Months Ended September 30,
2022 2021
GAAP
Results
Special
Items
Adjusted
Results
GAAP
Results
Special
Items
Adjusted
Results
Income from continuing operations before income taxes $141.2 $ 89.6 $ 230.8 $176.1 $ 36.5 $ 212.6
Income tax expense - GAAP (41.5) — (41.5) (32.1) — (32.1)
Income tax impact of special items (Attachment 3) — (22.5) (22.5) — (8.9) (8.9)
Tax adjustments (Attachment 3) — 10.8 10.8 — (1.6) (1.6)
Income tax (expense) benefit $ (41.5) $ (11.7) $ (53.2) $ (32.1) $ (10.5) $ (42.6)
Effective Tax Rate(1) 29.4 % 23.1 % 18.2 % 20.0 %
(1) Rates may not recalculate from figures presented herein due to rounding
Three Months Ended
September 30,
Nine Months Ended
September 30,
Reconciliation to EBITDA and Adjusted EBITDA: 2022 2021 2022 2021
Net (loss) income from continuing operations – GAAP $ (27.8) $ 33.4 $ 99.7 $ 144.0
Income tax (benefit) expense (1.2) 2.0 41.5 32.1
Interest expense 37.3 19.0 70.4 57.8
Depreciation and amortization from continuing operations 39.8 36.6 113.7 107.1
EBITDA $ 48.1 $ 91.0 $ 325.3 $ 341.0
Special items, before tax 82.0 19.9 89.6 36.5
Interest expense included in special items (10.0) — (10.0) —
Depreciation and amortization included in special items (0.8) (0.9) (4.0) (0.1)
Adjusted EBITDA $ 119.3 $ 110.0 $ 400.9 $ 377.4
NEWS RELEASE
Attachment 1
https://www.avient.com/sites/default/files/2024-01/AVNT January IR Presentation_w Non-Gaap Recs.pdf
When showing constant dollar figures on GAAP and non-GAAP financial measures, the foreign exchange impact is calculated by using current foreign exchange rates and applying them to the prior period results.
Continue fostering our Great Place
to Work® culture
Strategic Objectives
Long Term
Growth
Rates
Growth Drivers
$340
$455
$790
$1,120
$51 $84
$212
$650
$108 $113
$231 $230
$265
$358
$726 $730
8-12% 8-10% 8-10% 5%
Sustainable Solutions Composites Healthcare Asia/Emerging Regions
Profitable Growth Great Place to Work
5.4%
10.9%
2006 2014 2023E
EBITDA Margins
$0.14
$1.93
2006 2014 2023E
TOP-TIER SUSTAINABILITY PERFORMANCE
AND RECOGNITION
Industry Sustainability Standards
ESG Ratings Performance
1
3
5
87th
94th
percentile
5
Innovation is the lifeblood of a specialty company.
Avient reflects 2023 adjusted EBITDA guidance of $500M and estimated run-rate CAPEX of $110M.
2023E (%)
27
78
89
83 80 78 74
86
79 76
67 66
55
50
(39)
Av
ie
nt
AV
PM FM
C C
Avient Specialty
Other Specialty /
MULTIPLE EXPANSION
Note: Avient reflects 2023 adjusted EBITDA guidance of $500M and closing share price of $41.57.